36H The New Measure For Platform Lending - Plus Loan Latest
No-one could accuse the platform lending sub-sector of the alternative finance industry of chasing snappy PR concepts. Following the demise of the P2P Finance Association (which only had a handful of big players, anyway) the quango Innovate Finance has announced the launch of a new body 36H.36H is not a clothing measurement, but a reference to a piece of financial-services legislation. Catchy.
The lending platform industry – a pioneer in the UK's thriving FinTech sector – has opened up access to lending as a mainstream investment class to consumers for the first time. Retail investors can earn stable and attractive returns by lending directly through these platforms to creditworthy borrowers, including consumers, small businesses and house builders. The industry has delivered several hundred million pounds of interest for investors across the UK, including within the tax-free wrapper of the Innovative Finance ISA.The 36H Group – named after Article 36H of the Financial Services and Markets Act 2000, which is the legal basis for retail investment via lending platforms – provides a unified and strong voice for lending platforms. The Group sits within Innovate Finance and works closely with regulators, policymakers and other stakeholders as well as promoting the benefits the industry is delivering, including bringing choice, competition and transparency to the lending and investment markets.
Loan Offer Latest
Yes You Can, rated B, for £30,000 with an 11 per cent fixed yield, is currently 11 per cent subscribed. More loan offerings will land on site soon.
Historical Performance And IFISA Process Guide
Money&Co. lenders have achieved an average return of more than 8 per cent gross (before we deduct our one per cent fee).
That figure is the result of over £19 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders' capital is at risk. Read warnings on site before committing capital.
Money&Co. has been lending for over 5 years and has only had one bad debt so far, representing a bad debt rate of 0.03 per cent per annum.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income.Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.So here's our guide to the process:
Step 1: Register as a lender. Go to the login page, and go through the process that the law requires us to effect. This means we have to do basic checks on you to comply with money-laundering and other security requirements.
Step 2: Put money into your account. This is best done by electronic transfer. We can also process paper cheques drawn in favour of Denmark Square Limited, the parent company of Money&Co.
Step 3: Buy loans in the loan market. Once you've put cash in your account it will sit there - and it won't earn interest until you've bought a piece of a loan. It's this final step that requires lenders and IFISA investors to be pro-active. Just choose some loans - all loans on the Money&Co. site can be held in an IFISA - and your money will start earning tax-free interest.
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We're assuming a 7 per cent return, net of charges and free of tax here.Once you have made your initial commitment, you might then consider diversifying - buying a spread of loans. To do this, you can go into the "loans for sale" market. All loans bought in this market also qualify for IFISA tax benefits.